VANCOUVER, British Columbia, July 15 /PRNewswire-FirstCall/ -- AMS Homecare Inc. (OTC Bulletin Board: AHCKF; TSX-V: AHC), citing increased sales in its core business and benefits of its expanded product line, today reported first-quarter net income climbed 60.5 percent to CDN$334,971, or CDN$0.01 per diluted share, from CDN$208,664, or about break-even per share, a year earlier. Sales for the quarter ended May 31, 2004, increased 55.7 percent to CDN$1,960,515 from CDN$1,259,275.
“We continue to benefit from our strategy of enhancing marketing efforts and expanding our product line,” said Harj Gill, chief executive officer. “Increased sales and favorable product mix also enabled us to increase gross margin to about 43 percent of sales from about 39 percent.”
Gill also noted the company substantially increased its advertising spending to support its strategic plan, with CDN$43,699 spent in the FY05 first quarter compared with CDN$6,054 the prior year.
“We are gearing up for our planned expansion into the U.S.,” Gill said. “We are negotiating to establish a warehouse in the Northeast and are considering a roll-out of retail stores, probably starting in the Pacific Northwest. We also continue to negotiate a financing package to help facilitate our U.S. expansion.”
Currently the company’s business consists of mobility products and assistive living devices aimed primarily at the aging North American population. Products include scooters and power chairs, which accounted for about 83 percent of first-quarter sales. The balance of the quarter’s sales included cushions, disposables, daily living aids and the recently acquired IER monitoring services, which provides wireless devices and services for nursing calls and emergency alerts.
At May 31, 2004, AMS Homecare reported current assets of CDN$2,332,112 and current liabilities of CDN$1,223,210 for a current ratio of 1:9. Total assets were CDN$2,449,714 and total liabilities of CDN$1,814,439.
Founded in 1989, AMS Homecare is a successful purveyor of mobility equipment, durable and disposable medical products and patient monitoring technology that is recognized for its innovation, quality and style. With a base of 300-plus dealer customers in Canada, the company is moving forward to strengthen its foundation and to build an organization capable of serving the independence needs of the aging populations in Canada and the United States. More information is available at http://www.amshomecare.com/ .
AMS Homecare Inc. Financial Highlights Operations Three Months Ended May 31, 2004 2003 Sales $1,960,515 $1,259,275 Gross Margin 841,706 495,331 Earnings before other income and income taxes 374,971 207,171 Net income $334,971 $208,664 Weighted average common shares outstanding 46,583,674 46,197,750 Earnings per share -basic and diluted $0.01 $0.00 Balance Sheet May 31, 2004 Feb. 29, 2004 Current Assets 2,332,112 1,729,585 Total Assets 2,449,714 1,853,166 Current Liabilities 1,223,210 983,911 Long-Term Debt 148,972 161,694 Due to shareholders 442,257 442,257 Total Liabilities 1,814,439 1,587,862 Shareholders’ Equity 635,275 265,304
AMS Homecare Inc.
CONTACT: Daryl Hixt, Corporate Communication of AMS Homecare Inc.,+1-604-273-5173, ext. 121, or ir@amshomecare.com ; or Karl Plath,kplath@tirc.com , or Woody Wallace, wwallace@tirc.com , both of The InvestorRelations Company, Chicago, +1-847-296-4200
Web site: http://www.amshomecare.com/